The food basket market is slated to achieve a valuation of USD 11.9 billion in 2024. The industry is expected to exhibit a sustained CAGR of 3.9% and reach USD 17.5 billion by 2034.
Consumer convenience has become the new face of a host of industries in the last few years. The same has happened in the case of grocery baskets. The public, particularly the working population, are the main users of these baskets. These baskets provide a full meal solution so that they can have their preferred foods on holidays, travels, and other events. The packaging of these baskets also makes it easier for them to carry.
The tradition of gifts and hampers has been influenced by Western culture and has spread to every corner of the globe. Food baskets also have their niche in the gifting and stationery items that are considered to be in the luxury range.
These businesses place quality food and snacks in their baskets with the intention of making the baskets look classy. Consumers also like ready-made meal baskets because they receive quality products in one basket.
Food Basket Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 11.5 billion |
| Estimated Size, 2024 | USD 11.9 billion |
| Projected Size, 2034 | USD 17.5 billion |
| Value-based CAGR (2024 to 2034) | 3.9% |
Personalized food baskets are also gaining impetus. Consumers can now choose the contents of the basket. This option coupled with increased availability and a wide range of options to select from makes the consumers’ job easy.
Besides this, theme-based snack baskets are getting popular. Baskets based on movies, anime, series, and superheroes are also curated to target millennials. This also helps the brand attract more consumers.
The advent of last-mile delivery services in developing and developed economies has also benefitted the market. Zepto, Dunzo, Porter in India, Alibaba and JD.com in China, and UPS and FedEx in the United States have also lessened the distance between manufacturers and consumers. Grocery baskets are also becoming common in these countries as these platforms offer great discounts and offers.
Food baskets also get a lot of skepticism, especially from eco-conscious consumers and businesses. Manufacturers, to enhance the look of these baskets, use plastic or polyester baskets. These materials are not considered food-safe. This is impeding the adoption.
There are also issues with food waste if consumers do not use all the items in their food baskets. Businesses also find it difficult to curate grocery baskets that can meet the taste preferences of everyone. This consumer-manufacture tussle has slowed down the adoption.
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Subscription-based Food Baskets are Becoming Common in Corporations
Corporates and large businesses are taking advantage of subscription-based deliveries of these baskets. This is an effective way of getting these baskets on the doorsteps. Subscription-based grocery baskets are also preferred as they save a lot of financial capital for these companies.
These baskets are also in great demand as companies use them to provide employee perks and enhance workplace wellness. Besides this, healthy fruit baskets in these settings are also a common sight.
Customized and Healthy Food Baskets are Devoured by Health-Conscious Consumers
Customizable and healthy grocery baskets have gained in popularity, driven by increasing awareness of health and well-being. Health-conscious buyers want tailored solutions for meeting their dietary requirements or preferences like organic, gluten-free, or vegan offerings.
People have also embraced the service of delivering nutritional foods that are either cooked ready to be served or can be prepared with minimal difficulties as an option for their schedules being very tight. Similarly, the intrusion of various types and classes of ingredients which are fresh and high class without going through the hustles of shopping is what motivates most people.
Supply Chain Management Challenges and High Costs Negatively Affect the Industry
Food baskets usually cost more than individually picking items of choice. This is one of the main factors impeding the adoption. Besides this, managing the logistics and delivering food items that are perishable in nature also is a challenge.
Businesses in this industry have to ace their supply chain management game which is very difficult in economically unprivileged societies. Smaller companies, thus, have to rely on third-party last-mile delivery services for this.
In 2019, the food basket market was valued at USD 9.8 billion. The period of 2019 to 2023 was majorly influenced by events like pandemics, civil wars, and economic recovery in most parts of the world. By the end of 2023, this valuation reached USD 11.5 billion. The reported CAGR for this period was around 3.2%.
The pandemic in this period meant that people were forced to remain at their homes. With this, the industry received a severe blow. Vacation spots and outings decreased, and so did the demand for these baskets. Celebrations stopped, which significantly denied the possibility of people giving gifts to each other. War-like conditions in the European region also had an adverse effect on the sales.
The industry did catch some pace as economies gradually opened. With the tourism sector on the track again, the sales of these baskets also surged. E-commerce and supply chain networks also improved. People, affected by the pandemic, also became more health-conscious. All these things served the industry.
With subscription-based food baskets and the proliferation of last-mile delivery services, the industry is following an upward trajectory. In the years to come, the industry is very likely to have a bright future.
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HelloFresh, Blue Apron, and Home Chef are some of the pioneers in this industry. These tier-one companies dominate the international marketplace. They are also bringing a sense of innovation to the market by introducing a broad range of customizable meal plans.
Mobile apps and websites were leveraged by these companies to serve the consumers. These companies also procure their ingredients from high-quality stores. Organic and vegan options are also in their product offerings.
Tier two companies such as Sun Basket, Green Chef, and Purple Carrot are the ones focusing on domestic consumers. Large corporations and organizations also rely on these companies.
Subscription plans and specific diets like keto, paleo, vegan, and gluten-free are also one of their flagships. Sustainability is also in focus when it comes to these companies. These companies also allocate a part of their financial capital to frequent promotions.
Tier three companies, on the other hand, are the ones that cater to local consumers. These companies often have to rely on third-party delivery services. They hold their consumer base by offering affordable food baskets. Simplicity also is one of their unique selling points. Their low budget doesn’t allow them to invest in a website or applications. Although, word-of-mouth publicity is sufficient for their local market reach.
Region-wise analysis of the food basket market has been jotted down below. Based on these analyses, it can be inferred that Asian countries like India, Thailand, and China, are some of the most lucrative markets in this industry.
The United Kingdom and Germany are some of the leading economies in the European region. In the North American part, Canada and the United States are estimated to perform well in comparison to other countries.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Canada | 3.7% |
| United States | 3.8% |
| Germany | 3.6% |
| India | 4.2% |
| Thailand | 4.1% |
| South Korea | 3.7% |
| China | 3.9% |
| United Kingdom | 3.5% |
The food basket industry in India is estimated to exhibit a CAGR of 4.2% from 2024 to 2034. Significant migration toward urban and semi-urban centers has taken place in India, in the last few years. This has increased the demand for convenient and diverse meal options.
These baskets are a perfect solution for millennials looking for all-round groceries. The rising disposable incomes in the hands of the young demographic are also one of the main reasons for this.
The proliferation of e-commerce platforms in every nook and corner of the country is also responsible for this industry's growth. Indian consumers can now browse through a million options before ordering their baskets. India, being an agriculturally rich country, also helps businesses add fruits and healthy items in a cost-effective manner, which has also supported market growth.
China too, is one of the most promising markets in the Asian region. It is exhibiting a CAGR of 3.9% through 2034. China is one of the largest consumers of food in the entire world. This is primarily due to their humongous population. The middle class in the country is also moving away from conventional diets.
This is why the sales of meal baskets have gone up in China. The expansion of supermarkets and retail stores in the country offering grocery baskets is also aiding the market.
Government regulations regarding these baskets have also instilled a sense of trust among consumers. Consumers are even ready to pay a little extra for gourmet baskets with premium food baskets. Being agriculturally blessed, there’s also the availability of various food products in the country, making the job of key players in the industry easy.
In the United States, the industry is experiencing sluggish growth. It is slated to report a CAGR of 1.8% through 2034. The United States food basket industry is progressing as a result of consumers' increasing desire for convenient and healthful meal alternatives.
Due to their hectic schedules, customers are looking for fresh produce delivery services and meal packages. Food that is grown organically and locally is likewise becoming more and more popular. People are prepared to pay extra for sustainability and high quality.
Platforms for online grocery shopping have completely changed the way people buy food, making it easier and more comfortable. Grocery basket companies are thus leveraging these advanced networks of supply chains and delivery platforms.
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The food basket market is categorized into material, end-use, and sales channels. The top two categories, material and end use, are discussed briefly below.
Food baskets are used to pack a broad spectrum of edible items. Fruits and vegetables, bakery and confectionery, spices and condiments, tea and coffee, etc. Consumers are mostly ordering baskets containing fruits and vegetables. They account for more than 27% of the overall revenue share.
| End Use | Fruits and Vegetables |
|---|---|
| Value Share (2024) | 27% |
Health-conscious trends, post-pandemic, have influenced the way people consume food. Even if it is for recreational purposes, consumers are actively seeking healthy food options. This has forced consumers to curate baskets that contain seasonal produce. To cater to the demands of premium consumers, these companies are also including exotic fruits in their baskets.
Their demand is also touching the skies as they help consumers avoid picking up different fruits and vegetables from different stores. Consumers get a curated collection of fruits and vegetables in one place. The trend of citrus fruits in everyday meals is also one of the main reasons for this industry's growth.
The food basket industry based on material, is segmented into bamboo, reed, plastic, wood, and metal. The bamboo segment is estimated to hold a market share of 24.3%, as of 2024.
| Material | Bamboo |
|---|---|
| Value Share (2024) | 24.3% |
Eco-friendliness is one of the major reasons why consumers are increasingly preferring baskets made from bamboo. These baskets are more sustainable as compared to their metal and plastic counterparts. Apart from being sturdy, bamboo baskets are also very lightweight, which makes stacking a less cumbersome activity.
These baskets also give a natural and rustic look to consumers seeking stylish yet eco-conscious alternatives. Besides these baskets can also be used again for various other purposes after the end of their life cycle. All these reasons have taken the sales of bamboo baskets to unprecedented levels.
The food basket market has reached a level of point where there is no scope for innovations. Industry giants are leveraging websites and apps to deliver their product offerings. Some of them are also coming up with subscription-based food baskets. Domestic companies are emphasizing including regional as well as international products in their baskets to give consumers a suave experience.
Very few mergers and acquisitions are seen in this field due to very limited players in the market. Although, the sustainability wave affected the industry and businesses are using bio-degradable materials in their baskets. Blue Apron, HelloFresh, Instacart, FreshDirect, and Misfits Market, are some of the most prominent companies in this market.
Recent Developments
The material category in the food basket industry includes bamboo, metal, reed, plastic, and wood.
The end user category encompasses fruits and vegetables, bakery and confectionery, tea and coffee, and spiced and condiments.
The industry based on sales channels is bifurcated into offline and online.
Key countries of North America, Latin America, Europe, East Asia, South Asia, Middle East and Africa (MEA), and Oceania have been covered in the report.
The global valuation is USD 11.9 billion as of 2024.
The market is expected to reach USD 17.5 billion by 2034.
The market is growing at a CAGR of 3.9% from 2024 to 2034.
Blue Apron, HelloFresh, Instacart, FreshDirect, and Misfits Market.
In 2023, the global market was valued at USD 11.5 billion.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Material 6.2. End Use 6.3. Sales Channel 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material 7.1. Reed 7.2. Bamboo 7.3. Plastic 7.4. Wood 7.5. Metal 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 8.1. Fruit & Vegetables 8.2. Bakery & Confectionery 8.3. Spices & Condiments 8.4. Tea & Coffee 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel 9.1. Online 9.2. Offline 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Material, End Use, and Sales Channel for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Cambridge Hamper Company 20.2. Baskets Galore 20.3. Good L Corporation 20.4. Almac Ltd 20.5. Doyle Shamrock Industries 20.6. Peterboro Basket Company 20.7. Marlin Steel Wire Products LLC 20.8. Multimesh UK
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Food Basket Market
